Correlation Between DSV Panalpina and Accunia Inv
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Accunia Inv at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DSV Panalpina and Accunia Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Accunia Inv European, you can compare the effects of market volatilities on DSV Panalpina and Accunia Inv and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DSV Panalpina with a short position of Accunia Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Accunia Inv.
Diversification Opportunities for DSV Panalpina and Accunia Inv
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DSV and Accunia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Accunia Inv European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accunia Inv European and DSV Panalpina is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DSV Panalpina AS are associated (or correlated) with Accunia Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accunia Inv European has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Accunia Inv go up and down completely randomly.
Pair Corralation between DSV Panalpina and Accunia Inv
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 3.98 times more return on investment than Accunia Inv. However, DSV Panalpina is 3.98 times more volatile than Accunia Inv European. It trades about 0.05 of its potential returns per unit of risk. Accunia Inv European is currently generating about -0.03 per unit of risk. If you would invest 149,050 in DSV Panalpina AS on September 1, 2024 and sell it today you would earn a total of 1,650 from holding DSV Panalpina AS or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DSV Panalpina AS vs. Accunia Inv European
Performance |
| Timeline |
| DSV Panalpina AS |
| Accunia Inv European |
DSV Panalpina and Accunia Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Accunia Inv
The main advantage of trading using opposite DSV Panalpina and Accunia Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Accunia Inv can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Accunia Inv will offset losses from the drop in Accunia Inv's long position.The idea behind DSV Panalpina AS and Accunia Inv European pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Accunia Inv vs. Nordea Bank Abp | Accunia Inv vs. North Media AS | Accunia Inv vs. NTG Nordic Transport | Accunia Inv vs. Fynske Bank AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |